Must-Read Guide for Chinese Entrepreneurs Starting a Business in Thailand: How to Secure BOI Incentives-Step-by-Step

Many Chinese businesses considering expansion into Southeast Asia choose Thailand as their first destination-not only due to its geographical proximity and cultural openness, but also because of the country’s relatively investor-friendly policy environment. Among the most sought-after incentives is the package offered by Thailand’s Board of Investment (BOI), including corporate tax exemptions, import duty waivers, and relaxed restrictions on foreign shareholding. Yet securing BOI promotion is far more involved than simply submitting a few documents. Applicants must align their project with BOI-prioritized sectors, meet strict operational requirements, complete mandatory compliance filings-and adhere precisely to defined timelines and procedural details.

What Is the BOI-and Which Industries Qualify?

The BOI (Board of Investment) is Thailand’s national-level investment promotion agency, established by the Thai government to attract foreign direct investment aligned with the country’s long-term development strategy. Eligibility is not universal: only projects falling within industries listed in the BOI’s official “List of Promoted Activities” qualify. Current priority sectors include:• Advanced manufacturing (e.g., components for new-energy vehicles, smart sensors);• Digital services (e.g., cloud computing platforms, AI solution delivery);• Biotechnology (e.g., local production of medical devices, contract research and development);• Modern agricultural technology (e.g., precision irrigation systems, mass production of organic fertilizers);• Green energy support infrastructure (e.g., battery energy storage system assembly, local testing and certification of photovoltaic inverters).

Can a Chinese-Owned Company Registered in Thailand Apply Directly for BOI Promotion?

No. The BOI evaluates specific investment projects-not shell companies. Applicants must first register a Thai company, then submit an investment proposal under that entity’s name. Company registration itself must satisfy baseline requirements: at least one Thai national serving as director (a compliant local agent may fulfill this role), registered capital fully paid-in at no less than 25% of the estimated total investment amount, and a verifiable physical office address supported by a valid lease agreement and utility bills.

Key Steps in the BOI Application Process

1. Confirm whether your proposed project falls within the latest version of the BOI’s promoted activities list-consult the official English or Thai-language version on the BOI website, as unofficial Chinese translations may lag behind updates;

2. Prepare a comprehensive investment plan, including: documentation of technology sourcing; a detailed local employee training program; a binding three-year commitment specifying minimum percentages of locally procured raw materials; and concrete, actionable environmental protection measures;

3. Submit a preliminary online application via the BOI’s e-System, which issues a unique case reference number-this number must be cited in all subsequent correspondence;

4. Upon preliminary approval, BOI officials conduct an on-site verification visit, inspecting the proposed factory location, signed equipment purchase orders, and original copies of executed technology licensing agreements;

5. After receiving the BOI Promotion Certificate, applicants must complete capital injection, tax registration, and formal employment contract filings within 90 days-or risk automatic forfeiture of all approved incentives.

Common Reasons for Rejection-and How to Avoid Them

Use of vague, non-binding language such as “expected,” “planned,” or “intended to launch”-the BOI requires all commitments to be quantified precisely, specifying exact timelines, volumes, and named suppliers;

Inadequate demonstration of technological autonomy-for example, stating merely “using equipment from a German brand” without evidence of local technical authorization, joint R&D agreements, or transfer-of-knowledge provisions;

A local procurement commitment below the historical average for comparable BOI-approved projects, without supporting documentation proving supplier capacity (e.g., production capability certificates, supply chain audit reports).

Ongoing Obligations After Approval

Submit annually audited financial statements and operational reports to the BOI, detailing: the percentage of foreign employees; R&D expenditure amounts; and export revenue as a share of total revenue;

Notify the BOI in writing within 30 days-and obtain re-approval-if material deviations occur from the approved scope (e.g., a change in core business activity or a reduction in production capacity exceeding 30%);

If seeking to continue benefits beyond the initial tax exemption period (e.g., reinvestment tax credits), submit a new eligibility assessment application at least six months prior to expiry.

The above outlines essential facts and practical considerations for Chinese investors applying for BOI promotion after registering a company in Thailand. Should you have further questions-or wish to explore sector-specific entry criteria, standardized document templates, or strategies for managing critical deadlines-we recommend cross-referencing your project against the BOI’s latest official announcements and engaging a qualified local legal or advisory firm familiar with Thai commercial regulations for pre-submission compliance review.